Why do you think the Stock Market ?

Question

In a direct response to the election of Obama; the Stock Market has DROPPED 1600 points since Obama was elected.
Every day the Stock Market is dislaying an ongoing & growing lack of confidence in Obama as evidenced by the continuing Market plunge.

Why has the Stock Market continued to plunge reacting so extremely NEGATIVELY to Obama's election by viewing it as some sort of an impending inevitable " DISASTER " for our economy rather than a solution ?

Why did so many voters believe that Obama offered ' answers & solutions ' for our economy when the Stock Market reflects daily that Wall Street actually believes that Obama offers NO solutions or answers for our economy and that based upon the Dow Jones ...Wall Street has reacted in the belief that Obama will probably make our economy WORSE ?

Why doesn't the Stock Market or Wall Street have the same faith & confidence in Obama's economic policies that Obama's Supporters seem to have ?

Answer 1

The stock market rebounded on election day in anticipation of McCain winning. The next day it dropped and it hasn't stopped since. This is not a coincidence. Investors of every type understand socialism will cripple our economy and kill it in short order. Obama was not elected by investors. He was elected by welfare recipients who got out of bed long enough to vote for a bigger "paycheck."

Answer 2

The stock market has been tanking since well before the election.



It's been doing so because the rich are pulling all their money out of it. They're doing that because of the chaos that ensued, following the housing crisis.



The housing crisis was the result of rich people throwing all their money into an irrational housing bubble, which collapsed on them. It was a classic example of the free, unregulated market screwing itself into a tailspin, thanks the profound stupidity of large numbers of rich people. This sort of thing has been happening for hundreds of years. You've heard of the Dutch Tulip Madness?



The price of oil has also been diving very fast. This is because all the stupid rich speculators who had driven it so unrealistically high before, have pulled all their money out of there as well. It was yet another bubble, an artifact of an unregulated market, created by stupid rich people.



All of this is the direct result of good old Reaganomics, which holds that the answer to all our problems lies in letting rich people accumulate as much money as they possibly can, and charging them as little in possible in taxes for the privilege of exploiting our economy in any way they can imagine.



Thanks to that stupidity, rich people have accumulated a greatly inordinate fraction of the total money supply. And thus they have an inordinate degree of control over the economy.



But, as should have been obvious from the beginning, they have consistently demonstrated that they are not invariably going to produce the kind of economic wizardry, with that power, that Reaganomics would have you believe they would.



Much the contrary. Turns out, they're quite often liable to act like hysterical, stupid, and/or totally crooked and dishonest and irresponsible people, with absolutely no concern the nation as a whole, and with whom the public has no reason to place it's trust, at all.



And what you are seeing here is the fruits of their labors.

Answer 3

The intelligent investors know exactly what is coming with a liberal president, liberal congress, liberal house, liberal majority! They have pulled out and will lay low for awhile and the fools will soon see what this socialist vision has done to America. I will put my hard earned quarters under the mattress or in the walls. Have you noticed that the Obama supporters are saying that the gas prices have been lowered since the election...fools. Did you see the Iranian, Ahmadinajad (or whatever, praised the election of Obama and then immediately set off their first nuclear bomb/missile? Be afraid, be very afraid!

And the Bush WH tries to pour more money into bail outs to save America! Poor Bush,

Answer 4

I am willing to bet that the vast majority of Obama supporters don't understand the economy enough to realize how inane Obama's ideas are. However, the people who run Wall Street and the world economy are not college kids. They are people who do understand money and business, and realize that Obama's plans are to hurt business badly. Why would they then invest in businesses that are due to suffer or even go bankrupt under Obama? So they aren't trading.



And remember, it isn't just Americans trading on Wall Street, that is a world market you're seeing respond to Obama's election! They know we've elected a fiscal ignoramous.



Several people here need to update their information. Although the market was unstable before the election, it had shown signs of stability and some recovery in the days immediately before the election. But immediately upon Obama's election it began to plummet marketly again. All expert observers say it reflects the election result.

Answer 5

Because the Stock Market is like Las Vegas..the house always wins



no matter if the market goes up or down ..the Brokers still get their



commission for buying and selling stock..



When we lose enough points the stock market closes its doors



and then the banks and investors who bought on *Margin* or 10%



of the value of the stock..they have to pony up the money ..and



pronto or go to jail..it is like dealing with the Mafia and you owe them



money?

Answer 6

Because he has promised to raise taxes on the large corporations. Buying stock in a company is simply buying a share of it's future earnings. If the company is getting taxed more they are obviously going to be making less money, which in return causes the shares in that company to lose value. When the shares lose value the stock market plunges which is what happening here, it will only get worse.



The stock market knows exactly what is coming and no they do not share the same faith and confidence that the cult like followers of Obama do in him.

Answer 7

The stock market looks ahead 6-8 months. They dont like what they see, esp., increased capital gains tax, and increased tax on business and "the rich". Obama promised to raise all the taxes and the market is responding to this.

Answer 8

every election brings havock on the stock market.... it is the insertinty of the few months between powers. Obama has not been able to do much yet, as he is not president yet. Nor can any one person effect the economy over night..... it all takes time. If you have not patience you should not be dealing with stocks....

Answer 9

Yep, and things are going to way, way worse. Obama isn't going to help our country. There will be change, but it's not the kind we need.

Answer 10

You haven not seen anything yet. this is just beginning of our troubles. American has shot their own selves this time. and now they will pay the price.It time to pay the fiddler.

Answer 11

I like my odds at a blackjack table better.

Answer 12

because the wall street bunch know that obamas plan is BS

Answer 13

Historically always happens when a democrat is elected. Traders aren't sheep- they don't follow blindly or care about a message of hope. They know exactly what happens when a democrat is elected, taxes go up and shares go down- it's historicaly bad for big business.

Answer 14

Did you notice how steadily the market dropped before Obama won the election and since Oct '07?

http://finance.google.com/finance?q=INDEXDJX:.DJI

Answer 15

It doesn't have anything to do with Obama.

Answer 16

The stock market has been on a downward roller-coaster for months. I'm not sure how you didn't notice.

Answer 17

Or maybe, you know, the economy was in the tank BEFORE the election.



Just a thought.

Answer 18

He was only elected because he is black, a novelty, joke. Not because he has substance.

Answer 19

1. fear of Obama hiking taxes, dropping capital gain

2. fear of a terrorist disaster since Obama is anti war

3. spread the wealth they want to get out and run with their money before its taken away and distributed to others

Answer 20

the bush tax cuts are a failure.

Answer 21

AND IT WILL ONLY GET WORSE!